Weaker costs pull Asian PS, ABS markets down to 7-9-month lows

Styrenics markets across Asia continued to experience a stable to slightly lower trend last week given the persistent slump in upstream values. Although limited year-end purchasing activity helped cap discounts, the overall demand remained weak, causing an imbalanced supply-demand situation.

Chinese converters await influence of US elections

Import PS and ABS markets in China were on tenterhooks, as most downstream players awaited clarity on potential changes to US customs duties and sanctions under the new government. This uncertainty further dampened trading activities.

In the week ending on November 15, import PS prices in China were assessed stable to $10/ton lower at $1200-1250/ton for GPPS inj. and at $1290-1340/ton for HIPS inj., both on a CIF, cash basis. According to the weekly average data obtained from ChemOrbis Price Index, GPPS hit its more than nine-month low, while HIPS reached the lowest level since early March.

“We are expecting to hear about new customs duties from the US, so keeping our buying tied to basic needs. We don’t plan to build our inventories for the next year as we may get fewer orders along with a possible increase in the duties. So, the outlook seems worse for the next year,” commented a Chinese converter.

Meanwhile, in the ABS market, prices were assessed at $1400-1550/ton on the same basis, with the midpoint stabilizing at its late September low. However, the performance of the market remained weak, with a strong sense of caution among both upstream and downstream players. “Suppliers generally adjust their prices based on their inventory levels. Need-based procurements keep downstream demand poor, with limited transactions,” noted a Chinese trader.

Local markets on 5-week downtrend inside China

Following a short-lived rally that began immediately after the Golden Week holiday, a bearishness reigned over the domestic styrenics markets inside China due to weakening cost support and reducing orders. Notably, prices in dollar terms exhibited weaker performance due to the ongoing depreciation of the yuan against the greenback.

Even though PS markets managed to stabilize in the past three weeks, ChemOrbis data reveal that local GPPS inj. stood out as the weakest during the current downtrend, with its weekly midpoint hitting the lowest level since late January. The ABS market also recorded week-by-week declines, though cumulative losses were less pronounced compared to PS grades.

SE Asian markets reflect similar weakness

Southeast Asia’s import PS and ABS markets mirrored the softness in China, with suppliers offering discounts at the high end of price ranges. The latest assessments took the midpoint of price ranges down to their eight-month lows for GPPS inj. and to their more than seven-month lows for HIPS inj. and ABS injection.

Accordingly, last week, PS prices were assessed $5-10/ton lower at $1225-1320/ton for GPPS inj. and stable to $10/ton lower at $1320-1410/ton for HIPS inj., both on a CIF SEA, cash basis. Import ABS inj. prices were also stable to $10/ton lower to be assessed at $1380-1550/ton with the same terms.

Regional players reported that sellers were struggling to clear their inventories, which led to a stronger wait-and-see attitude across markets. “Falling styrene prices are not helping at the moment, as overall demand has already been weak,” noted a Taiwanese producer.

“We don’t see a new-year preparation mood among players, demand hasn’t changed much compared to the previous months,” commented a Vietnamese producer who also informed that they were not planning a maintenance shutdown or to lower their operation rates. Meanwhile, a source from a Malaysian producer remarked that although they maintained their import ABS offers this week, they were open to issuing discounts of around $20-30/ton during negotiations.

Butadiene loses $310/ton in 5 weeks

On the upstream front, styrene prices both on CFR China and CFR South Korea basis dropped by $20/ton in the third consecutive week to their lowest levels since mid-December 2023, respectively standing at $1020/ton and $1010/ton.

Spot butadiene prices on CFR China basis, meanwhile, extended their losses for the fifth week, plummeting by $150/ton from the previous week to stand at $1270/ton on November 15. ChemOrbis Price Wizard data show the butadiene monomer market posted a total decrease of $310/ton, or roughly 20%, over the last five weeks.